Honda has risen from a company that was best known for its motorcycles 40 years ago to a company that is one of the top automotive manufacturers in the world today. In 2008, Honda supplanted Chrysler as the fourth best selling automaker in the U.S. and they were in sixth place in global auto sales.

Their story is truly impressive. But lately the automaker has faced numerous challenges, including declining sales. We look at four reasons why Honda is in decline.

1. Not Improving Quality.

What is surprising about Honda is that despite spending billions of dollars a year on research and development, their new models and new generation models have not raised the bar. In fact, recently some of their models have faced scrutiny for cheaper interiors and being inferior to their predecessors.

The Civic, which when its last generation debuted, was named Motor Trend Magazine’s 2006 Car of the Year, is all-new for 2012. But Consumer Reports Magazine, a consumer products review magazine, ranked the 2012 Civic near the bottom of the compact class, behind other models such as the Hyundai Elantra. The Civic received a rating of 61, a 17-point drop from the 2011 models.

The Civic is not alone in Honda models with declining Consumer Reports ratings. The 2011 Odyssey minivan dropped to an 83 from 91 the prior year. The Pilot SUV has also dropped from 79 to 74. And new Honda models fared terribly. The Insight hybrid model scored just a 54 while the CR-Z came in at a lowly 57 and neither has been well-received by the public.

2. Transmissions.

While several of their key competitors have six-speed automatic or continuously variable transmissions throughout their model lineup, Honda does not. Comment

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Edited September 22, 201114 yr by 01Malibu

Honda is still doing very well...but...

Here in central Ohio a lot of people work for Honda...and a lot of people on the inside of the company will tell you exactly the same things the article states.

...all I am gonna say about THAT...

Time to shake things up....

Saw a new-style gray EX coupe parked along the street yesterday while walking. It really is not proportioned well, very ungainly looking.

Then there's the CRZ which I think is a good looking, funky little car, but the only powertrain they offer is an outdated, inferior, underpowered mild hybrid system.

Honda has lost its way........ but its a complex deal. to stay big like they grew to, they have to make big fat cars they never used to.

And they haven't evolved the small cheap stuff in the ways they used to lead. Their styling reeks and Hyundai / Kia is taking over their old position.

GM Ford and others have eroded Hondas top stuff.

Honda needs a game changer.

Honda has been trying to emulate Toyota too much in recent years...boring, soulless FWD appliances. They used to make sports cars and distinctive, high quality small cars.

The Civic is "all new" but any Jack on the street can't really tell the difference unless you park them side by side..... even then, it is seen as "just an update"

It took Honda a good 5 years to get their 5-speeds to function properly in the first place..... even today they lack the smoothness that even the old GM 4-speeds have.

Unless there was a press release that I missed, none of Honda's current offerings have direct injection. VTEC has fallen way behind as far as VVT technology goes. When Chrysler is leaving Honda in the dust on engine technology, you know the world has really turned upside down.

They've done close to nothing to address the loudness of their cars over the road where Chevy, Chrysler, and VW have all made great improvements.

The problem Honda faces as well is that they do not sell well at all in emerging markets, so they've never had those sales to back them up when the first world hits hard times.

If you never crack into a market, you never get good import prices. My tour guide while I was in Costa Rica told me that Hondas are as expensive as BMWs down there because they have to ship them in such small numbers.

2. Transmissions.

I have wondered for years why Honda hasn't stepped up with 6-speeds. The new Odyssey has an available 6-speed... even if they have to buy other brands, wouldn't it be more beneficial to have a 6-speed in their cars for competitive reasons?

When you google (or do a YOU TUBE SEARCH) of the following terms, it is shocking:

2006 Honda Civic cracked engine block

Honda transmission 1998-2002 Accord

Honda problems

Honda won't start

Honda Pilot lemon

Honda Civic cracked visor

Honda Fit cracked windshield

If customers aren't happy, things could change. I remember when the rear drive GM cars were strong sellers but the first front wheel drive cars had problems which drove people away. There are tons of unhappy Civic owners out there. There are some unhappy owners out there.

Honda never got into the truck business. And with GM and Ford building better small cars, the Civic is losing its edge fast.